Board, Chair & NED
Board Effectiveness and Succession Planning
The role of the Board of Directors has greatly expanded to encompass a more strategic and hands-on approach towards corporate governance. Beyond their traditional oversight duties, boards are now expected to actively guide management, ensuring the company remains aligned with its core values and mission. Routine tasks are no longer sufficient; boards must now turn their attention to transformative initiatives and long-term sustainability. With heightened expectations and increased accountability, board effectiveness and succession planning have become paramount considerations for organizations seeking sustained success.
Board advisory is becoming an increasingly important part of Odgers Berndtson Leadership Advisory services and we have the benefit of proprietary tools to use in measuring board effectiveness and for succession planning. Board effectiveness review covering the aspects of governance, composition, skills, and performance can help organizations benchmark against industry metrics and plan for succession
The role of Non-Executive Directors (NEDs) on the board has come to the forefront. NEDs are external individuals who provide valuable insights and knowledge to the board, beyond simply upholding regulatory requirements. They focus on areas that are crucial for organizational growth like driving innovation, promoting diversity, and addressing Environmental, Social, and Governance (ESG) considerations. Incorporating NEDs who are tech-savvy and have strategic insight can significantly contribute to an organization’s innovation agenda. Their ability to challenge conventional wisdom and offer fresh perspectives can drive creativity and help the company stay ahead in today’s competitive market. Advisory boards are also instrumental for companies looking to tap into specialized knowledge and strategic advice. Comprising a diverse group of experts, these advisory boards act as a disparate group of interested specialists.
We are seeing the emergence of advisory boards, that work alongside statutory boards. While the statutory board focuses more on governance, advisory boards are seen guiding & driving the business.
Diverse board members are expected to bring in unique perspectives and insights to the organization. While there is a clear, mandated expectation, boards often prefer to operate within their comfort zones. Their hesitance to introduce Non-Executive Directors (NEDs) stems from the fear of disrupting the organization’s current dynamics but this is a short-term view. Herein lies an opportunity for the establishment of Standard Operating Procedures (SOPs) for board members. An outline with clear expectations and guidelines to promote cohesion and effectiveness within the board, harnessing the unique strengths & knowledge that each member brings to the table.
Boards are not side players who only look at compliance anymore, they are actively propelling the company’s growth & shaping its strategy. To drive success, boards must actively engage SMEs, champion innovation, and break free from conventional networks and familial ties.
To ensure that Non-Executive and Independent Directors are well-suited to the organization's goals, a thorough selection process is essential. Companies should implement checks to guarantee that each board member can provide a valuable contribution. By engaging in robust succession planning and widening the candidate pool, boards can find effective NEDs. Companies must demonstrate openness to diversifying perspectives by selecting board members from various backgrounds and expertise, moving away from traditional networks and familial connections. Embracing these practices will lead to more effective boards and ultimately, greater organizational success.
Odgers Berndtson got together CEOs and board members, from across industries in Kolkata to discuss the theme of ‘Board Effectiveness and Succession’. This whitepaper aims to capture the main highlights from the roundtable discussion. To know more such insights as mentioned above download the white paper below. We greatly value & appreciate the contributions from the following eminent leaders:
- Ambarish Dasgupta, Senior Partner, Intueri Consulting LLP
- Anand Holani, Consultant – Industrial Practice, Odgers Berndtson
- Anuj Singh, MD & CEO, Spencer’s Retail
- Arijit Basu, Managing Director, Veedol Engine Oils
- Gaurav Ghosh, Vice Chairman and Managing Director, J. Thomas & Co
- Kaushik DasGupta, Partner & Lead - Consumer Retail & Media Practice, Odgers Berndtson
- Madan Mohan Chakraborty, CEO & Managing Director India, Iskraemeco
- Pandanda Madappa, Managing Director, Macmet India
- Prabal Basu, Independent Director, Peerless Group
- Dr. Prasad Medury, Managing Director India, Odgers Berndtson
Click to Download
Board Effectiveness & Succession Planning